DuPont 2007 Annual Report Download - page 20

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
CAUTIONARY STATEMENTS ABOUT FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements which may be identified by their use of words like “plans,” “expects,”
“will,” “anticipates,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address
expectations or projections about the future, including statements about the company’s strategy for growth, product
development, market position, expenditures and financial results are forward-looking statements.
Forward-looking statements are based on certain assumptions and expectations of future events. The company
cannot guarantee that these assumptions and expectations are accurate or will be realized. For some of the
important factors that could cause the company’s actual results to differ materially from those projected in any such
forward-looking statements see the Risk Factors discussion set forth under Part I, Item 1A beginning on page 7.
Overview
DuPont has been successfully executing its three growth strategies – Putting Science to Work, Leveraging the
Power of One DuPont and Going Where the Growth Is. In 2007, approximately 1,200 new products were
commercialized, approximately 2,000 new U.S. patent applications were filed and more than one third of 2007
sales were derived from products introduced in the last 5 years. The company again reduced fixed costs as a percent
of Net sales. In 2007, over sixty percent of the company’s sales were to customers outside of the United States. The
company achieved 18 percent growth in the emerging markets of Europe, Asia Pacific and Latin America.
In January 2008, the company outlined goals and objectives beyond 2008 through 2010 in a five point plan. The
company sees potential for double digit earnings growth driven by advances in several strategic areas:
New science for growing agriculture markets – With demand for protein rising rapidly, global food production will
have to double between now and 2025 on virtually the same amount of land currently in production. As one of the
world’s largest producers of corn and soy seed and crop protection products, DuPont is bringing to market more
efficient and cost-effective control systems for weeds, insects and fungus to boost farm productivity, quality and
yield. The company anticipates that new products such as Optimum
TM
GAT
TM
traits and Rynaxypr
TM
insecticide, will
provide significant growth.
Growing demand for Safety & Protection – People want to feel safer and more secure at home, on the job, in their
cars – everywhere. The company’s long experience and $6 billion base business in advanced materials such as
Kevlar», Nomex»and Tyvek»have resulted in a broad offering of products and services that address this growing
global need. In 2007, the company announced a new $500 million Kevlar»brand fiber production facility in South
Carolina, which came on the heels of capacity expansions for Nomex»flame-resistant fibers. In 2008, the company
will continue to use its science and growth investments to take advantage of the opportunity it sees for attractive
growth in its Safety & Protection segment.
Springboard position in emerging markets – The company’s rapid top line growth in emerging markets is a key factor
in counter-balancing softness in the North American automotive and U.S. housing markets. Business unit leaders in
the Performance Materials, Coatings & Color Technologies and Electronic & Communication Technologies
segments are succeeding in generating strong growth in the emerging markets of Asia Pacific, Central and
Eastern Europe, and Latin America.
Extend cost productivity gains – DuPont continues to reduce fixed costs as a percent of Net sales. Cost savings
projects have offset inflation in personnel costs and have provided funding for a large number of growth investments.
DuPont is focused on continuing to generate cost productivity gains as a mechanism for funding growth.
Continue development of Applied Biosciences – Science and innovation are critical to the company’s success.
Ongoing development and commercialization of DuPont Applied Biosciences
TM
products will continue through at
least 2010 with increasing intensity.
18
Part II